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First Choice Finance - Mortgage BrokerCompare Home Owner Loans


Equity release funds Bank of Mum and Dad

Equity release funds Bank of Mum and Dad

 



Video transcript

New research has shown that although first time buyers are only a couple of years older now than they were 30 years ago, many more are utilising equity release funds from their parents to pay their deposit.

HSBC`s new Property Path report notes that the average age that people moved into their first property in the 80s was 27. That`s not changed much today, with the average age being 29 – the real difference is in the deposit: 30 years ago, it was around £1,000, while today it`s closer to £30,000.

While inflation may have boosted the difference between those two numbers, as a percentage of the borrower`s annual income, the deposit made up just 12 per cent of the 80s borrower`s annual income, compared to 82 per cent for the modern buyer.

With the parents of first time buyers now being in their mid-50s and 60s on average, they are more likely to have paid off a fair proportion of their mortgage and be in a position to utilise equity release in order to aid their offspring in being able to set foot on the property ladder.

An example of an equity release scheme is a lifetime mortgage which allows people who are approaching retirement to unlock the money that`s built up in their home without needing to leave the property they`ve lived in for much of their lives.

As well as helping to pay for their children to set off on their own housing adventure, the money can also be utilised to pay for a treat for yourself, supplement your income or allow you to afford a better standard of care for your loved ones.

Discover more about what equity release schemes we have access to by visiting us at firstchoicefinance.co.uk or by calling us on 0333 003 1505 on your mobile or 0800 298 3000 from a landline.

Homeowner Secured Loans
Rates From 7.1% APRC Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property. First Choice are tied to certain loan providers.

Mortgages & Remortgages
4.5% APRC
Representative Example: Borrow £80,000 over 25 years At 4.6% Variable, £461.95 for 300 months.
Total Payable £138,585. Total Cost Of Credit £58,585 (incl £1360 fee).


Unsecured Personal Loans
REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Security is required on immovable property.



Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home

First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.


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